Lincoln County board votes to end StaffEZ arrangement after state retirement guidance

The Lincoln County Board of Education voted June 23 to terminate its contract with StaffEZ, a third-party employment vendor used to place certain school employees, citing guidance from state authorities and Tennessee statutes governing reemployment of retired school personnel.

Mister Daniels moved to terminate the district’s StaffEZ contract and to require future hires to be direct employees of the Lincoln County School System; the motion was seconded and carried with board members indicating "aye." The board discussed state communications received that day from the State Treasury Department, Tennessee School Boards Association (TSBA) and the Tennessee Consolidated Retirement System.

Board members said the recent guidance makes employees rehired through third-party vendors a concern because those workers are not contributing to the state retirement fund while employed by the vendor. Board members repeatedly referenced the statutory reemployment rules and cited Tennessee Code sections discussed at the meeting: 8-36-805, 8-36-821 and 8-36-822. One board member summarized the district’s position: "...we require that all school personnel be employees only of the Lincoln County School System, creating equal treatment for all school employees," and tied the change to the state rulings.

The board discussed operational consequences. District staff explained that retired employees rehired under these rules must observe a 60-day separation period before being rehired into the system, and that the hard-to-fill exception does not eliminate that 60-day requirement. Board members noted the separation requirement would create extra workload for central office staff and could be burdensome for affected employees.

Board members also questioned whether the state would offer amnesty for employees already engaged through third-party vendors. Staff and board legal counsel reported there was discussion at the state level about possible amnesty for some employees but that, as of the meeting, the state treasury and retirement system had not issued an amnesty; the district’s attorney had been told no amnesty had been authorized.

Board members raised the practical effect on local employees. One board member said the change would be a “tough pill to swallow” for people who had done nothing wrong. Staff said some Lincoln County employees currently engaged through StaffEZ number six, though board members said the statewide situation affects multiple districts.

The motion states the district will terminate the StaffEZ contract and follow the state statutory requirements for rehiring retired personnel; the motion passed on a voice vote recorded as "aye."